RAPAPORT... Luk Fook’s same-store sales decreased 10% in
the first fiscal quarter amid an unfavorable comparison with last year and the impact of the US-China
tariff war.

Total same-store sales — at Luk Fook outlets open for more
than a year — in Hong Kong and Macau dropped 10% in the three months ending June 30. Same-store gold sales plunged 20%, while gem-set jewelry purchases
grew 6%. Although the average selling price for gem-set items declined by a
double-digit figure, this was offset by a large increase in sales volume, the
company said Monday. The figures are for shops it operates itself, but exclude franchises.

The figures look weak in comparison with the equivalent period last year, when same-store sales increased 22%. Luk Fook also noted “the continuing impact of [the] US-China trade war on market sentiment.”

At the end of the quarter, Luk Fook had 208 self-operated
stores, of which 139 were in mainland China, 47 in Hong Kong, 11 in Macau and
11 in other locations. The retailer also has 1,653 licensed shops.